Libya 'bet $1bn on SocGen shares'

French investment bank Societe Generale made a $1bn bet on its own shares for Libya's sovereign wealth fund, according to reports.

The bank structured a $1bn note repayable to Libya's fund in 2018, which is adjusted to reflect the equivalent performance of the bank's shares, the Financial Times reports. The deal, which is the Libyan Investment Authority's largest investment in five years, has lost 72% of its value by the middle of 2010. Although SocGen declined to comment, it said it deals with many sovereign funds in compliance with rules and regulations. Libya made the deal with SocGen in March 2008, shortly after trader Jerome Kerviel was revealed to have made €50bn of rogue trades, costing the bank €5bn. ...